By Marcio Silveira, CFP, CFA, CAIA of Pavlov Financial Planning 

What is Bitcoin? Bitcoin is the most popular cryptographic currency. It is money backed by a sophisticated computer code and not a precious metal like gold or a government like the US Dollar. Over the last year the public attention paid to Bitcoin and its value measured in US Dollars grew significantly.

How is it created?

The process of creating new Bitcoins is based a preset protocol of increasingly more difficult code puzzles. The process acquired the nickname of “mining” due to the similar nature of gold rushes of the past. Mining for Bitcoins substantial computational resources, which generally involve specialized hardware and huge amounts of electricity.

What are the benefits?

Enable financial transactions to be cleared without a single trusted third party. This reduces dramatically the transaction costs. A maximum number of 21 million Bitcoins will be ever created. This provides protection against debasing (inflation).

How is it regulated?

The main benefit of agility generates the fear that this ease of transfer could help the operations of international criminals and terrorists. It also threatens the business models of existing financial institutions.  Different countries have different attitudes. Some big countries like China and India have already meaningfully restricted the use of it. The US allows it, but a number of rules regarding its use and exchange are evolving and tend to be more restrictive over time. Over the long term, things are less clear but if Bitcoin becomes a meaningful and common way to pay for goods and services, the entire financial and economic system will be very different. The government will need to give up its role in setting monetary policy and this is a really monumental change that is hard to conceive today.

Is it safe?

There have been a few cases of theft from Bitcoin Wallet services. A recent incident involved a start-up called Flexcoin, which lost about $620,000 worth of Bitcoins to hackers. Since only the very techs savvy have direct access to the direct Bitcoin ledger and most regular people rely on these service providers, the risk of loss due to theft is real.

Volatility

There has been enormous volatility in the Bitcoin price measured in US Dollars, especially over the last year. See the Graph here.

Conclusion

What to do? Should I invest in Bitcoins? If you are tech savvy and very aggressive, go for it knowing that the losses can be very significant and permanent due to the highly speculative nature of it. For the rest of us, stay away for now.

​Erik Knisely, Summer Intern at the Arlington Chamber of Commerce  
 
Employing an intern is a popular practice, and can be done by almost any business or organization. Businesses who hire an intern gain someone who is either brand new or relatively new to a work environment, and is eager to learn and experience all that he or she can. By adding someone to the office with this mindset, everyone benefits. Everyone will have the opportunity to provide the intern with different experiences that would be attractive and beneficial for someone new to the work world, but may not be the most important thing on the employee’s list. For example, as an intern working for the Arlington Chamber of Commerce through the PRIME Program run by Arlington Public Schools, I was excited to helpdit articles and read over blog submissions; my coworkers, however, had more pressing matters at hand, and were happy to be able to check a task off of their to-do lists.

For teenagers, the world of desk jobs and office buildings is often a foreign one. The behind the scenes work of restaurants and shops is often shrouded in mystery. By offering the opportunity for some of these teenagers to intern with you, you are exposing them to another side of a world that they experience every day. Whether or not they know which direction they would like to head later in life, internships provide teenagers and young people with valuable information to use when figuring out where they would like to see themselves in the future. Perhaps an internship at a bakery solidifies a young man’s love for cooking and he applies to culinary school. Thanks to an internship, he was able to have a first hands experience that put him on a path that he wants to be on. Or, perhaps a young woman who is set on becoming a Senator interns on Capitol Hill and discovers that the world of politics is not a world that she wants to be a part of. This does not mean that the internship was unsuccessful; one of the first steps to finding what you want to do in life is figuring out what you don’t want to do. Deciding that you don’t want to be a lawyer in high school is a much better option than deciding that you don’t want to be a lawyer in your junior year of college.

Of course, the interns are not the only ones gaining something from the internship. By bringing in young people who are eager to work and ready to do what needs to be done, business owners and workers can focus less on the basic tasks that pile up on their to-do lists, and instead focus on the more important aspects of their job, like doing the things that they wanted to do when they first became a lawyer, or a baker, or an architect, or a doctor. However, the purpose of this internship should be to help complete tasks that were overwhelming one’s schedule rather than just a source of free labor; the purpose of an internship is for both parties to gain something. In addition, an intern provides a new point of view for the office; an intern’s inexperience is actually a plus here, because he or she can look at a product with a similar level of knowledge as the public or business partners or clients will, and give feedback that would not come from the rest of the staff.

In today's world, technology plays a huge role in business. Teenagers have grown up in the age of the internet, and it would be a challenging task to find a prospective intern who does not have a Facebook page, Twitter page, or smart phone that he or she can use to its fullest potential. In hiring an intern, a company has gained someone who most likely has, at the very least, a solid hold on social media and working with computers.

Finding young people to fill these internships won’t be difficult; the partnership between the Chamber of Commerce and Arlington Public Schools led to my internship, and the PRIME Program is always looking for Arlington and DC businessmen and women to serve as mentors to students. Hiring an intern does more than give a local teenager something to do over the summer or give businesses free labor; businesses gain a new mindset to add to their teams, one that would be difficult to find outside of high school kids, and young men and women are introduced to a world where they will one day work in a supportive and involved environment, giving them an important preview into their future.

​By Sara Duke, Executive Director of Encore Stage & Studio

Have you ever watched Saturday Night Live or a rerun of Who's Line is it Anyway? and thought,how do they make comedy look so easy? Well, I hate to break it to you, they’re professionals. That’s how they make it look easy. But, they do employ an important principle of improvisation that enables them to create comedy together. Really, it's a mindset and I believe using it in the office develops respect, teamwork and creativity.

Yes, and…” That’s the important tenet. Simple, right?  Just “yes, and….”   When two actors are in an improvised scene they work to trust one another and build upon each other’s instincts. Tina Fey does a great job of describing this idea in her book, Bossypants:

"The first rule of improvisation is AGREE. Always agree and SAY YES. When you're improvising, this means you are required to agree with whatever your partner has created. So if we're improvising and I say, 'Freeze, I have a gun,' and you say, 'That's not a gun. It's your finger. You're pointing your finger at me,' our improvised scene has ground to a halt. But if I say, 'Freeze, I have a gun!' and you say, 'The gun I gave you for Christmas! You bastard!' then we have started a scene because we have AGREED that my finger is in fact a Christmas gun."

So how does this translate into the workplace? You’re not likely to run into someone asking you to believe that their hand is a gun, but you’ve probably worked on a project or planned in event with a co-worker before. Starting that process with an attitude of agreement will allow creativity to flow between partners and show respect for each member of the team. How often have you worked with someone that immediately answers any idea with “no,” “we’ve already tried that,” or “it’s impossible?” These words are toxic to any work place that wants to foster innovation. It takes open and receptive minds to develop new ideas.

"The second rule of improvisation is not only to say yes, but YES, AND. You are supposed to agree and then add something of your own. If I start a scene with 'I can't believe it's so hot in here,' and you just say, 'Yeah...' we're kind of at a stand-still. But if I say, 'I can't believe it's so hot in here,' and you say, 'What did you expect? We're in hell.' Or if I say, 'I can't believe it's so hot in here,' and you say, 'Yes, this can't be good for the wax figures.' Or if I say, 'I can't believe it's so hot in here,' and you say, 'I told you we shouldn't have crawled into this dog's mouth,' now we're getting somewhere.”

With an attitude of agreement, we can now add to the conversation in a positive, constructive, and forward thinking manner. Each of Fey’s examples heightens the comedy of the situation by accepting and building upon the original idea. Can’t we do this in our offices each and every day? Build an environment where creativity is appreciated and co-workers/managers support and magnify new ideas. Try a little bit of “yes, and…” thinking in your workplace this week – I dare you. Quotes from

Bossypants by Tina Fey (2011).

Sara Strehle Duke is an accomplished director, choreographer, and improvisational actor, in addition to her interest in arts management. Before joining Encore Stage & Studio as Executive Director in 2010, she worked for the Arden Theatre Company in Philadelphia and Round House Theatre in Bethesda. She is a Phi Beta Kappa graduate of the College of William & Mary and an Arlington native.

By Erin Mendenhall, principal; Mendenhall Properties

As the principal real estate agent of Mendenhall Properties, I am frequently questioned about how folks can better sell their home in our great community. This takes hard work, a lot of planning, and a team of professionals to help you through what can be a tedious process. As Mendenhall Properties gets ready to celebrate its ten year anniversary in a few months, I’ve come up with a few tips and insight along the way to help my clients stay ahead of the game and proactive:

1.) Have a house consultation. At Mendenhall Properties, first we walk through the home first with an experienced, local home-inspector to review the property. This is the first step because it allows the home inspector to identify any major unforeseen issues that may arise during an inspection. There should be no surprises at all during a buyer home inspection; however, this process ensures that you cover all of your bases.

2.) Check for creepy crawlers! This step is important, yet often overlooked. No one wants to walk through a house with termite markings on the walls or remnants of unwanted house guests. Ask your real estate professional to have a termite inspection. You may not think that you need it, however, those critters can get into hidden nooks and crannies in your property that you may not even know exist.

3.) Staging consultation. No house is perfect, not even yours. In order to prepare your property for prospective buyers, schedule a staging consultation for professionals to go through your home. They will inform you on how organize your furniture, which lighting to use during a viewing and how to accent your property’s best features. It’s like a personal stylist before a big event – you want to look your best. You can request a report immediately after the meeting to include new paint options, as well as repairs that may need to be done, all of which are completed with a timeline.

4.) Make your home picture perfect. Online photos are key. 98% of buyers are looking online. If you have a poor photographer, your listing may suffer because of it. I can’t even begin to tell you how many Arlington homes I see with photos that look unprofessional. As upsetting as it may be to most of you, smart phones are not a proper source of photography. Pictures need to show off your home, which makes this a crucial stage.

5.) Plan ahead. This tip bears repeating: Even if you’re thinking about selling your home in two years, meet with an experienced real estate agent early on to help you through the process. The more work you do in advance, the less stress you will have later on with putting your house on the market.

By Sally LaBonté, Website Coordinator, Arlington Partnership for Children, Youth & Families 


The Teen Network Board (TNB) is a youth-led project of the Arlington Partnership for Children, Youth and Families, a commission jointly appointed by the Arlington County Board and the Arlington County School Board,charged with improving the health, well-being and safety of citizens of Arlington.

One of the youth co-chairs of the TNB, Anna Tramposch (Yorktown, Class of 2014), was recently selected as an Extraordinary Teen by Arlington Magazine. Anna spent 4 years on TNB, two as a co-chair. "I love that Teen Network Board promotes youth having active roles in the community and I have made friends from other schools that I never would have met otherwise." Co-chair for 2014-15, Noah Chase (Yorktown, Class of 2015), said in his application, “I know how much of an impact the Teen Network Board can make. I feel that I can add to this impact by really knowing what teens care about.

This year, they helped with Arlington Parks and Recreation and Care for a Change’s Color Run. For the last 4 years, they have worked with Arlington's Ready Coalition on Mythbusters to answer middle schoolers’ questions about “What’s high school REALLY like?” Everyone’s favorite service activity is making sandwiches for Martha’s Table. They have started a chapter at Yorktown High School for Volunteer Emergency Service Team, a pilot program with the Arlington County Office of Emergency Management. The service and leadership the TNB can foster in youth is a true asset to the community.

Last year, the group worked with Borromeo House, a home for teen moms, to update and beautify the house where the moms live with their young children while attending high school (see the video here). The TNB was established in 2003 to give youth a voice in Arlington. Mary Ann Moran and Judy Hadden were the first organizers. The current youth coordinator is Siobhan Grayson, MSW, an employee of Arlington County’s Department of Human Services. Ms. Grayson says “Working with the TNB is the highlight of my 25 years with Arlington County. These youth give new perspective and gain leadership experience that inspires me.”

TNB meets twice a month, usually at Central Library. Four committees address issues germane to Arlington’s youth, such as drugs and alcohol, positive peer relations, teen employment, volunteer and community service options for teens. Learn more here. Applications will open briefly at the end of August for interested high school students. Follow them at www.twitter.com/arlingtontnb  

So how do you know when to refinance a mortgage?  I’ve refinanced twice over the past four years. Why? Because not refinancing didn’t make a whit of sense. I was planning to be in my condo long enough to recoup the closing costs on each of the transactions. That was all I needed to know. The first digit of my mortgage interest rate (and yes, I’m bragging a little) is a 3. Even a few years ago, that would have seemed unbelievable. 

Maybe it’s time for you to refinance as well. Some banks even offer a refinance analysis. It’s likely the heftiest line item in your budget, which means lowering that bill just a little can free up some much needed cash. Mortgage rates are incredibly low right now—averaging in the 4 percent range, so my rate isn’t out of reach for you—and for many, that means a refinance is in order. To determine if you’re a good candidate for a mortgage refinance, you need to crunch some numbers.

Start by answering three questions:

1. How much is your current monthly payment?

2. How much will your new monthly payment be?

3. How much are the closing costs?

Once you have those figures in front of you, you can subtract the refinanced monthly payment from your current monthly payment, and divide the closing costs by the result. That will tell you how long you need to stay in the home to recoup the cost of closing—and actually save money on the refinance. If you’ve decided to go ahead, do your research and read the fine print. Talk to an expert on how to refinance. However, if you are planning to move before you can recoup the closing costs then, stick with your current mortgage.

If you find you can’t refinance, you may be able to recast the mortgage instead. Also, if you’ve already done so, and want to knock your payment down even more, recasting a mortgage is a perk offered by some lenders in certain states— you’ll have to make a phone call to see if your state is among them— that allows you to pay down a chunk of your principal and a small fee to the lender. The amounts required will vary by lender, but generally you’ll put at least a few thousand dollars (and sometimes more) toward principal and pay a couple hundred dollars as a service charge to the lender. You don’t have to apply for a new loan or go through the appraisal process.

Finally, whether you employ these strategies or not, consider making an extra payment on your loan each year (or whenever you have some extra cash). It will save on interest and help you pay off your loan faster.

Example: Take a $200,000 30-year fixed loan with a 5% interest rate. Over the life of the loan, you’ll pay over $186,000 in interest alone. But make one extra payment each year—that’s about $1,000, or less than $100 a month—and you’ll pay the loan off four years earlier and save over $30,000 in interest.